A Newport-based heavy-highway contractor and materials supplier has been fined for wage-related violations.
Delaware Attorney General Kathy Jennings announced that the state's White Collar Crime Unit resolved a case against Diamond Materials over claims of false statements and unlawful deductions from payroll reports.
“When contractors bid on government contracts, they have a legal and a moral obligation to do right by workers and the public,” said Jennings. “Unfortunately, some contractors try to underbid their competitors by cutting corners on funds owed to their workers. That’s illegal. My office is cracking down on businesses that violate workers’ rights.”
The settlement agreement follows an investigation by the Delaware Department of Labor and state Justice Department.
Diamond Materials’ was investigated on charges of deducting thousands of dollars from its workers’ wages on public construction projects that were covered under Delaware Prevailing Wage Law.
Certified payroll reports submitted to the state by the contractor claimed that these deductions were used to pay “training benefits” for the workers.
According to a release, the funds paid for a membership in a contractor association.
Under the terms of a settlement agreement, the contractor will end this practice and pay $100,000 to the state.
The Delaware Department of Labor also resolved claims against the contractor, obtaining $3,733.54 in restitution for the workers as well as additional payments to the agencies.
The White Collar Crime Unit continues to investigate false statements on certified weekly payroll reports. The team also continues to investigate incidents of worker underpayment for possible criminal Wage Theft charges.
Anyone suspecting wage theft or other violations of Delaware labor laws is asked to contact the Delaware Department of Labor at (302) 761-8200.
Keep it Clean. Please avoid obscene, vulgar, lewd,
racist or sexually-oriented language. PLEASE TURN OFF YOUR CAPS LOCK. Don't Threaten. Threats of harming another
person will not be tolerated. Be Truthful. Don't knowingly lie about anyone
or anything. Be Nice. No racism, sexism or any sort of -ism
that is degrading to another person. Be Proactive. Use the 'Report' link on
each comment to let us know of abusive posts. Share with Us. We'd love to hear eyewitness
accounts, the history behind an article.
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.